In case of demand, a slight change in the price will make greater changes in demand
Perfectly elastic
Perfectly inelastic
Elastic
Inelastic
A state government wants to increase the taxes on cigarettes to increase tax revenue. This tax would only be effective in raising new tax revenues if the price elasticity of demand is
Unity
Revenues from the sale of a good will decrease if
Income increases and the good is normal
The price rises and demand is elastic
The price rises and demand is inelastic
Income falls and the good is interior
In figure, a unit elastic demand curve is shown by
a
b
c
d
Demand will be more elastic
The higher the income
The lower the price
The shorter the passage of time after a permanent price increase
The more substitutes available for the good.
The demand will be _____ if there is no change in the demand of the commodity inspite of the change in the price of the commodity.
If change in the demand of the commodity is proportionate to change in price, the demand of the commodity will be
Unit elasticity
Less than unit elasticity
Under which one of the following circumstances will the firm have to absorb all the increase in indirect tax itself, being unable to pass on any of it to the consumer?
Perfectly inelastic demand
Perfectly elastic demand
Unit elastic demand
Relatively elastic demand
If the demand of the commodity changes at faster rates than change in the price of the commodity, the demand of the commodity will be known as
If the price elasticity of demand for a good is. 75, the demand for the good can be described as:
Normal
Inferior
